News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lIUxpfSem3
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/8kBulRFd6l
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6u52PuzIaY
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/rHDy0XNZjQ
  • (Weekly Outlook) Australian Dollar Outlook: AUD/USD Divergence With Wall Street Risks Continuing #AUD $AUDUSD #Fed #Stocks https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/06/12/Australian-Dollar-Outlook-AUDUSD-Divergence-With-Wall-Street-Risks-Continuing.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ryxG0fHmzd
  • The US Dollar steadied against most ASEAN currencies this past week. Key support levels remain in play looking at USD/SGD, USD/THB and USD/PHP. USD/IDR may rise with a new trendline. Get your market update from @ddubrovskyFX here:https://t.co/bpr5ZlKIcE https://t.co/0pskmzXZHi
  • EUR/USD has been looking toppy since late May as bearish technical signals played out. But, rising Euro short bets from retail traders hint that the currency may hold its footing. Get your market update from @ddubrovskyFX here:https://t.co/fAZijmQVqh https://t.co/pXICvFE007
  • The Japanese Yen may rise as retail investors increase their long exposure in pairs like USD/JPY and EUR/JPY. Will these pairs turn lower? What are key levels to watch for? Find out from @ddubrovskyFX here:https://t.co/PqNahX71oF https://t.co/xZzmwrVQcr
Gold Price Pares Post-Fed Gain Amid Rise in US Treasury Yields

Gold Price Pares Post-Fed Gain Amid Rise in US Treasury Yields

David Song, Strategist

Gold Price Talking Points

The price of gold gives back the advance following the Federal Reserve interest rate decision as the 10-Year US Treasury yield climbs to a fresh weekly high (1.68%), and fresh data prints coming out of the US economy may keep the precious mental under pressure as the update to the Personal Consumption Expenditure (PCE) Price Index is anticipated to show a rise in inflation.

Advertisement

Gold Price Pares Post-Fed Gain Amid Rise in US Treasury Yields

The double-bottom formation from March appears to have run its course as the price of gold reveres ahead of the $1800 handle, and the key reversal pattern may continue to unravel as the precious metal extends the decline from the monthly high ($1798).

Image of DailyFX economic calendar for US

It remains to be seen if the update to the PCE Price Index will influence the price of gold as the Fed’s preferred gauge for inflation is anticipated to hit a two-year high of 1.8% from 1.4% in February, but signs of a stronger economic recovery may keep longer-dated US Treasury yields afloat even though the Federal Open Market Committee (FOMC) stays on track to “increase our holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month.”

In turn, the 10-Year US Treasury yield may climb towards the yearly high (1.77%) as it appears to be breaking out of a bull-flag formation, and a further recovery in longer-dated Treasury yields may push the price of gold back below the 50-Day SMA ($1745) as it reverses course ahead of a key psychological figure.

With that said, the decline from record high ($2075) may continue to underscore a change in trend as a ‘death cross’ formation takes shape in 2021, and the precious metal may reestablish the downward trend from earlier this year as the double-bottom formation from March unravels.

Gold Price Daily Chart

Image of Gold price daily chart

Source: Trading View

  • Keep in mind, the price of gold pushed to fresh yearly highs throughout the first half 2020, with the bullish price action also taking shape in August as the precious metal tagged a new record high ($2075).
  • However, the bullish behavior failed to materialize in September as the price of gold traded below the 50-Day SMA ($1745) for the first time since June, with developments in the Relative Strength Index (RSI) negating the wedge/triangle formation established in August as the oscillator slipped to its lowest level since March.
  • Since then, the decline from the record high ($2075) indicates a potential shift in market behavior as the RSI dipped into oversold territory for the first time since 2018, with a ‘death cross’ formation taking shape earlier this year as the 50-Day SMA ($1745) developed a negative slope.
  • A double-bottom emerged as the price of gold failed to test the June 2020 low ($1671), but the key reversal pattern appears to have run its course as the precious metal reverses course ahead of the $1800 handle.
  • Need a break/close below the Fibonacci overlap around $1743 (23.6% expansion) to $1763 (50% retracement) to bring the $1690 (61.8% retracement) to $1695 (61.8% expansion) region back on the radar, with a move below the March low ($1677) opening up the $1670 (50% expansion) area, which largely lines up with the June 2020 low ($1671).

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES